GEW Malaysia 2020: The Export Business

For nearly as long as there’s been people, there’s been trade. The modern system of international trade is a complex web of import/export businesses that handle the sale, distribution, and delivery of goods from one nation to another. Businesses that sell their goods and services to customers in other countries are exporting them – they are producing them in one country and shipping them to another, doesn't matter what the good or service is or how it is sent. Exporting is one way that businesses can rapidly expand their potential market.

Businesses export goods and services where they have a competitive advantage. That means they are better than any other companies at providing that product. They also export things that reflect the country's comparative advantage. Countries have comparative advantages in the commodities they have a natural ability to produce. For instance, Kenya, Jamaica, and Colombia have the right climate to grow coffee. That gives their industries an edge in exporting coffee.

Exporting offers plenty of benefits and opportunities, including access to more consumers and businesses. If you’re only doing business in this country, you may be limiting the total potential profits you could earn on opportunities to expand your business worldwide. Apart from that, diversifying market opportunities so that even if the domestic economy begins to falter, you may still have other growing markets for your goods and services.

Of course, there are some complexities that come from exporting. These include, more paperwork, potential added financial risk, cultural and language barriers, possible requirements that you modify your product packaging, among others.